Cisco was highly successful with its ERP effort. What accounts for this success? What were the most important things that Cisco did correctly? Today, businesses function on complex processes that involve compound and interdependent structures that make companies to appreciate enterprise resource planning system (ERP)_which can incorporate, manage and process all information in one system. This system can be only possible with an appropriate fusion of right selection of computer hardware and software.
* Mini Case (p. 45) a) Why is corporate finance important to all managers? All managers are mandated with a goal to improve the businesses bottom line. Successful corporations have two main goals they must meet to stay in business. The first goal is “identifying, creating, and delivering highly valued products and services to its customers.” (Brigham) The second goal is to generate “enough cash to compensate the investors who provided the necessary capital.” Behind every managerial action, the manager must ally every action they take with meeting the above two goals. In order to evaluate the success of those decisions, managers must be able to analyze their decisions and fully understand the impact past decisions will have on the past, present, and future health of the company.
* IT budget were allocated based on a client-funded-project system, which meant that each department had the flexibility to select and fund the deemed most valuable projects. * IT investment decisions on application projects were pushed out to the line organizations but still executed by the centralized IT organization. * Cisco spent whatever was needed on IT as long as it made the business more productive. The main claim of this model was that business groups independently selected and funded their IT projects, which encouraged employees’ independent, creative, and entrepreneurial spirit. However, the model also affected Cisco in many negative aspects.
I also believe that by following my recommendations, Barilla will succeed in influencing its distributors and Sales personnel to work together and implement the JITD program. This will not only result in better performance in terms of time and money but also promote trust and good relations among all the partners in the supply chain. 2. Identification of the problem Barilla is suffering from what is known as Bull whip problem- high inventory, -magnification of demand variability across the chain-frequent promotion – only one way of flow of information. • Promotions: Barilla’s sales strategy relied heavily on the use of promotions, in the form of price, transportation and volume discounts.
Nestle wanted to centralize all the autonomous divisions and use common processes, systems and organization structures throughout its organization. They were trying to introduce economies of scale and common practices to all of its brands which were operating independent of each other. Redundancies such as the different coding and pricing of vanilla showed that there were opportunities that would benefit Nestle in becoming one highly integrated company. Pella wanted to coordinate sales, service, and manufacturing by replacing their incompatible legacy systems. Cross enterprise integration would allow visibility across the entire organization resulting in optimization and synchronism between the departments.
Chapter 2 focuses on the Dell Computer founder and CEO, Michael Dell. Dell’s contributions to the field of business include the direct model of mass customization and direct distribution model. Mass customization is a “one-to-one relationship between the company and the customer” which leaves out the intermediary (Krames, 2003, p. 59). Dell’s direct distribution model eliminates dealers, inventories, and institutes cost-cutting measures by cutting out the intermediaries. Deleting players from the distribution chain can be risky, but results in a reduction in operating costs and improved margins (Strickland, 1999).
But we went a step further. We laid out additional short and long term goals for ourselves that included metrics related to our performance in the eyes of our retail partners, our consumers and, of course, our investors. Importantly, this is not at the cost of creating value for shareholders. It is the source of that value. PepsiCo has a Code of Conduct that outlines multiple business ethics issues for example, bribery and conflicts of interest.
Company mainly focused on maximizing the shareholder value by the CEO and other management’s managerial philosophy. Currently, Hill Country uses a risk adverse strategy to choose their business or project. Hill Country’s industry is high competitive but it kept going well with cost efficiency and quick reaction to customer requirements. From these reasons, Hill Country has few risks. However, analyst and experts present that Hill Country’s excess liquidity with zero debt is going to lose benefit and fail to maximize the shareholder value.
Recommending putting into practice an Enterprise Resource Planning (ERP) information system and also implementing a Supply Chain Management (SCM) system with a group to overlook the complete supply chain process might confirm a feasible resolution to fight back the global supply chain dilemmas faced by Total Safety. Consequently after executing and implementing the ERP system, clients will be exactly charged for service and precisely invoiced across the business’s global continuum; clients will obtain their orders more rapidly with reduced mistakes. Therefore of the SCM development, Total Safety will be familiarized and enhances its business procedures, resulting to augmenting profit. The SCM group will contribute its time and supplies to make certain the new procedures execute effortlessly. ERP and SCM jointly assist in synchronization of resources.
Flutter.com’s model had to combine peer-to-peer offers in full and matching exactly the amounts and odds of each offer. By doing so, Flutter.com limited the flexibility of the platform and providing less liquidity. Betfair, in contrast, decided to increase the chances of matching the offers by aggregating all offers, without the need of a peer-to-peer direct transaction. Betfair also reinforced this intention by giving incentives to high volume punters such as preferential commission rates. This, in the end, helped to balance supply and demand at Betfair’s marketplace.